$2bn used so far to clear interest: PM
May 28, 2018 8:13 pm
Prime Minister Voreqe Bainimarama says since 2007, the Government has spent more than two billion dollars in interest to clean up SODELPA Leader Sitiveni Rabuka’s mess along with the debt of other governments which they inherited.
Speaking to former Fijians at the Victorian Multicultural Sports Association Business Event in Melbourne, Australia on Sunday Bainimarama said the current head of SODELPA who was in charge of Fiji’s economy when National Bank of Fiji collapsed, a scandal that created such massive debts that it would take generations to repay.
Bainimarama says the government brought prudent financial management to our economy, unfortunately, still paying for the many mistakes of past governments.
He says previous governments borrowed irresponsibly and they mismanaged the economy, and if they have been responsible, Fiji would already be debt free.
Bainimarama says the government has set aside 40 percent of kits spending toward capital development for the past 11 years.
This has amounted to seven billion dollars.
Bainimarama revealed that for every one dollar spent on capital expenditure, only 33 cents are borrowed.
He says twenty-six years prior, of the only 3.5 billion dollars total spent on infrastructure, former governments were borrowing 76 cents in the dollar.